UAE legislation acts as an effective and reliable tool for optimizing taxes and international business. It works extremely well for both individuals and companies once the basic requirements to qualify are met. UAE tax residency is available to anyone in any country and has no adverse legal consquences.
UAE tax residency opens up a wide range of opportunities for business
Application of treaties for avoiding double taxation
Application of preferential tax rates on certain types of income under agreements between the UAE and other countries
Protection against automatic exchange of tax information
Maintaining the confidentiality of information on accounts opened with banks and financial institutions in the UAE and abroad
Concealment of information about owners and assets
Protection of information on ownership of real estate and assets based on legitimate mechanisms provided under UAE law
Earning income worldwide without paying taxes
Profits derived from international activities of legal entities and individuals are not taxed in the Emirates and can be freely withdrawn
Withdrawal of dividends without tax deduction
The distribution between shareholders of the aggregate income received from global sources is not taxable in the UAE
Business command and control center confirmation
Using tax resident status to ensure adequate compliance with requirements of the UAE’s Economic Substance Regulations (ESR)
Conditions for obtaining tax resident status in the United Arab Emirates
Residing in the UAE
To obtain tax resident status you need to reside in the UAE for more than 180 days a year
Resident visa
Individuals, including shareholders or company management, are required to obtain a resident visa
Residence address
For an individual, confirmation of employment and actual place of residence in the UAE are required
Control center
A legal entity requires a physical office as well as administrative staff
Source of income
Permanent income derived from a source in the UAE must be proven
Age of company
A legal entity must be have been incorporated for at least one year
SORP solutions for registration of tax residency status in the UAE
Incorporation and licensing
We choose a business license and form of legal entity, and incorporate a local or free zone company
Registration of residency
Guards against automatic exchange of tax information when performing UAE banking operations
Opening bank accounts
Use our close cooperation with UAE banks, understanding of procedures and assistance in passing KYC
New rules are in place since 2018 for the automatic exchange of tax information between jurisdictions under the provisions of the Common Reporting Standard (CRS). Automatic information exchange takes place between the tax authorities of an individual’s country of tax residency and the country of citizenship if a bank audit raises suspicions about the origin of funds owned by tax residents of a foreign country. SORP experts recommend obtaining a secure bank account and non-investment visas as categorized by the OECD.
In order to confirm personal status as a tax resident, the following solutions are available:
Business Certificate
After registering for VAT, receiving a Tax Registration Number and a business license
Status of business certificate
With a valid business license and confirmation of the physical location of the company (lease agreement)
Tax domicile certified by Federal Tax Authority
After a year of successful activity, certified by an audit and an income stream earned in the UAE
Economic Substance Report: Ministry of Finance
Confirming economic presence in the UAE, a management decision center, business address and actively trading
Tax advisor certificate
After opening a current account and concluding a service agreement with a Tax Advisory consultancy
For an individual
In order to confirm personal status as a tax resident, the following solutions are available:
Residence permit
On a non-investment basis, obtained for example through formal employment or business ownership in the UAE
Center of vital interests
Documentary evidence of housing availability, confirmation of contact information
Tax domicile certified by Federal Tax Authority
Not earlier than 6 months after receiving the first income in the UAE
Economic Substance for an individual
Confirm employment in the UAE through labor relations or owning a business with a permanent corporate address
Tax advisor certificate
After opening a current account and concluding a service agreement with a Tax Advisory consultancy
SORP Group comprehensive solutions in the field of tax residency
International tax planning
Individual solutions to improve the efficiency of all tax optimization schemes for international business based on UAE legislation and our expertise from successful cases
PRO support
We represent your interests with all government agencies, issue resident visas to partners, staff and their families, and renew permits, licenses and registrations
Obtaining tax domicile
Obtaining resident visas that are not investment in nature, with the provision of all procedures needed to obtain a tax domicile certificate in the UAE
Confirmation of economic presence in the UAE
We prove that operational activities occur at place of incorporation, the presence of a control center in the UAE, and that tax is paid in the UAE
Nominee service tools
We will provide a limited nominee director and shareholder to enable transfer pricing and conceal details of the true company beneficiaries
Confirmation of the center of vital interests in the UAE
We confirm the existence of an active UAE company and identify the main business processes that occur at its place of incorporation